Believe it or not, the steering lag in the new version of rFactor is a significant improvement over previous versions. Previous versions polled the controllers once every frame so if your framerate was 20fps the controllers were polled at only 20Hz. The new version uses a separate thread which polls the controllers at a constant 100Hz which makes the steering much more responsive. If you think there's lag now, be thankful you didn't try it before!
There's a lot about this latest version of rFactor that I like and which has been improved upon but there's still a lot about it that I don't like. GTR2 delivers a better driving experience in my opinion than rFactor -- especially when using axus' tweaked tyre curves -- which is strange considering that they both use similar game engines. I suspect ISI aren't very good at creating content while SimBin/Blimey! are able to wring out the most possible from ISI's game engine.
All in all though, in my opinion LFS still provides the best, most natural feeling and most dynamic driving experience of all the games currently on the market. However, the gap is narrowing and the amount of quality content available for GTL/GTR2/rFactor is steadily increasing. I have been spending quite a bit of time recently running the GTR2 Saleen around some of the better GTL add-on tracks (Limerock Park, Nordschleife, Croft, Assen, Brands Hatch, Watkins Glen, etc) and have been having a lot of fun. I just wish the LFS dynamics and driving feel could be merged somehow with the GTR2/GTL content ...